CoreLogic (NYSE: CLGX) announced that intends to divest its Asset Management and Processing Solutions segment, the area of its business that offers services to banks that allow them to handle their portfolio of foreclosed properties. The segment will now be classified as held for sale, and the company will take a noncash impairment charge of $52 million.

The announcement is not a major surprise. Management has stated that it has considered divesting the business and has been fairly aggressive in recent years in whittling down CoreLogic’s operations to focus on the areas that management feels are the most important. The AMPS segment largely works on a cost-plus business model and is not scalable like the other parts of CoreLogic, and there are few synergies with CoreLogic’s other businesses. Further, this business is experiencing a significant downward reset in revenue as the housing crisis recedes. However, the business is reasonably profitable and does have value.

Some analysts are concerned that CoreLogic will not be able to realize a fair price, which is what has held back a sale in the past. The set of strategic buyers is very limited, and finding a buyer willing to pay full value for a business in decline could be difficult. But our concern is balanced with an appreciation for what will likely be the final step in management’s efforts to reinforce the company’s moat by shedding noncore businesses.

The AMPS segment accounts for about 17% of the company’s revenue but is in decline. We expect to hear more details during the company’s earnings call next week and will provide an update at that time.